How Do Unlimited Credit Cards Work?

While some credit cards market themselves as ‘unlimited’ in terms of spend limits, the reality is usually more complicated than that. In Australia there are a number of charge and credit cards that come with no preset spending limits. If you are tired of hitting your monthly limit, love premium rewards programs and exclusive lifestyle benefits, and have an excellent credit history, you might find one of these financial products worth considering.

A credit card with no preset spending limit can provide you with the credit to make large purchases; but of course, you’ll eventually have to pay it all back. Interest rates may also apply if you don’t pay your card off in full each month. These credit cards can also provide you with many benefits and rewards points you wouldn’t always receive with a simple debit card. Read on below to learn about a selection of Australia’s current credit cards with no preset limit.

Credit cards vs charge cards

Before delving into credit cards that come with no advertised limit, it’s important to clarify the difference between a credit card and a charge card. Credit cards are very common – Visa and MasterCard are two of the main payment companies, and most banks will sell one of these credit card products. Their key feature is allowing you only make a minimum repayment at the end of each month; you can maintain a continued balance of debt over multiple billing cycles, and you’ll be charged interest on this debt. Credit cards typically come with a set credit limit each month to prevent customers from potentially accruing dangerously high levels of debt, which they may be unable to pay back.

A charge card, by contrast, is a card which you must pay off in full at the end of each month, or else be subject to late fees and restrictions. As a result, charge cards typically have no credit limit each month, since you’ll likely be restricted from spending more until you pay off your monthly debt. Charge cards are much less common than credit cards nowadays – the best-known charge card providers are Diners Club and American Express, although they are offered by several other providers.

Credit cards with no preset credit limit

Just about every credit card with no preset limit is an expensive, premium card. These products almost universally include significant bonuses, such as a concierge service, airport lounge privileges, various insurances, rewards points and much more.

When people hand you those fancy-sauce metal credit cards and the weight throws you off so you almost drop them

You can generally expect to pay a significant annual fee for one of these cards, as well as a hefty interest rate. Moreover, some flagship credit cards – such as ‘Platinum’ or ‘Diamond’ – come with minimum credit limits: a minimum amount you need to spend each month to keep using the card, usually several thousand dollars.

It is also worth noting credit cards with no preset limits don’t simply give you unlimited purchasing potential. A ‘no limit’ credit card simply means that the credit provider has not set a universal monthly limit for all customers. A bank will still negotiate an individual credit limit for each customer based on their ability to pay, including credit history, income and expenses; if you have a high income with few expenses, then your limit will probably be very large!

Some providers have a policy of not sharing spending limit details with the customer and will approve transactions at their discretion. Each customer’s credit limit is usually determined based on a number of factors, including income levels, payment history and historical spending behaviour.

Below is a snapshot of several premium credit card products from the Canstar database, some of which come with no preset spending limit:

Below is a full list of credit cards in the Canstar database with no maximum credit limit, accurate as of October 2017:

ANZ

ANZ

ANZ

ANZ

ANZ

ANZ

ANZ

ANZ

Auswide Bank

Auswide Bank

Bank Australia

Bank Australia

Bank Australia

Bankwest

Bankwest

Bankwest

Bankwest

Coles

Coles

Coles

Coles

Coles

Coles

Commonwealth Bank

Commonwealth Bank

Commonwealth Bank

Commonwealth Bank

Commonwealth Bank

Commonwealth Bank

Commonwealth Bank

Commonwealth Bank

CUA

CUA

Diners Club Australia

Diners Club Australia

Diners Club Australia

Diners Club Australia

G&C Mutual Bank

Heritage Bank

HSBC

HSBC

HSBC

IMB

IMB

Latitude Financial Services

Latitude Financial Services

Latitude Financial Services

Latitude Financial Services

Macquarie Bank

Macquarie Bank

Macquarie Bank

Macquarie Bank

Macquarie Bank

NAB

NAB

NAB

NAB

NAB

NAB

NAB

NAB

NAB

P&N Bank

P&N Bank

P&N Bank

P&N Bank

People’s Choice Credit Union

Queenslanders CU

Queenslanders CU

RACQ Bank

RACQ Bank

Victoria Teachers Mutual Bank

Victoria Teachers Mutual Bank

Woolworths

Woolworths

Frequent Flyer

Frequent Flyer Black

Frequent Flyer Platinum

Low Rate Platinum

Platinum

Rewards Black

Rewards Platinum

Rewards Travel Adventures Card

Low Rate Mastercard

Platinum Rewards Mastercard

Low Rate Visa Credit Card

Platinum Rewards Visa Credit Card

Visa Credit Card

Breeze Platinum Mastercard

Qantas Classic Mastercard

Qantas Platinum Mastercard

Zero Platinum Mastercard

Low Rate Mastercard

Low Rate Platinum Mastercard

No Annual Fee Mastercard

No Annual Fee Platinum Mastercard

Rewards Mastercard

Rewards Platinum Mastercard

Diamond Awards

Gold Awards

Low Fee Gold Mastercard

Low Fee Mastercard

Low Rate Gold Mastercard

Low Rate Mastercard

Platinum Awards

Standard Awards

Low Rate Credit Card

Platinum Credit Card

Frequent Flyer Dual Card

Frequent Flyers Club Card

Personal Card

Personal Dual Card

Platinum Visa Credit Card

Platinum

Classic Credit Card

Platinum Credit Card

Platinum Qantas Credit Card

Low Rate Mastercard

Platinum Mastercard

28 Degrees Platinum Mastercard

Gem Visa

GO Mastercard

Mastercard

Black Card – Macquarie Rewards

Black Card – Qantas Rewards

Hilton HHonors Platinum Card

Platinum Card – Macquarie Rewards

Platinum Card – Qantas Rewards

Low Fee Visa Card

Low Rate Card

Low Rate Platinum Card

Premium Visa Card

Qantas Rewards Signature Card

Rewards Classic Card

Rewards Platinum Card

Rewards Signature Card

Velocity Rewards Card

& Visa Platinum

Classic Visa

Simple Visa

Visa Platinum

Visa Credit Card

Low Rate Mastercard

Platinum Rewards Mastercard

Low Rate Mastercard

Platinum Rewards Mastercard

Visa Classic Credit Card

Visa Platinum Credit Card

Everyday Platinum Credit Card

Qantas Platinum Credit Card

Pros and cons of a credit card with no preset spending limit

There are several advantages and disadvantages to having a premium credit card with no preset spending limit, which we’ve summarised for you below:

Pros

Convenience of having no preset limit on your spending

Extensive rewards program, with points redeemable for many items and services

Potential to save some money through use of complimentary card services such as a concierge service and insurance benefits

Cons

No preset spending limit can encourage some people to spend beyond their means and incur hefty interest payments

Higher interest rates and annual fees than most credit cards

Customers may not use all the included services and rewards

A credit card with no preset spending limit can be a valuable and convenient tool if you make a lot of purchases each month, with many rewards and benefits on offer – just beware of the extra costs that often come with it! To find out more about premium credit cards with no preset spending limit, check out the highest-rated products on the Canstar website:

Related

Canstar is an information provider and in giving you product information Canstar is not making any suggestion or recommendation about a particular credit product or loan. If you decided to apply for a credit product or loan, you will deal directly with a credit provider, and not with Canstar. Rates and product information should be confirmed with the relevant credit provider. For more information, read the product disclosure statement (PDS), Canstar’s Financial Services Guide (FSG), detailed disclosure, important notes and liability disclaimer.

CANSTAR is an information provider and in giving you product information CANSTAR is not making any suggestion or recommendation about a particular credit card product. If you decide to apply for a credit card, you will deal directly with a financial institution, and not with CANSTAR. Rates and product information should be confirmed with the relevant financial institution. For more information, read CANSTAR’s Financial Services and Credit Guide (FSCG), detailed disclosure, important notes and liability disclaimer.

This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you. Consider the product disclosure statement before making a purchase decision. Canstar provides an information service. It is not a credit provider, and in giving you information about credit products Canstar is not making any suggestion or recommendation to you about a particular credit product. Statistics referenced on this page have been verified by Canstar Research. Research provided by Canstar Research AFSL and Australian Credit Licence No. 437917.